Tuesday, June 17, 2025
Labour continue Tory marginalisation of Welsh Government
The site says that when the Conservatives were in power at Westminster, Welsh Labour Ministers were angry when they were excluded from the process of choosing projects and allocating funds to them, with local authorities receiving money directly from the UK Government’s Department for Levelling Up, Housing and Communities, initially headed by Michael Gove.
This was directly contrary to the arrangements in place when the UK was an EU member state. In those days European aid money came directly to the Welsh European Funding Office (WEFO), a branch of the Welsh Government. WEFO decided which projects to take forward and how much money they would receive.
Welsh Labour ministers felt that the decision of Tory Ministers to bypass them undermined the devolution settlement. However, despite claims of a much closer partnership between the two Labour governments, it has now become apparent that the Welsh Ministers are still not being trusted to manage these funds:
Last week, Chancellor Rachel Reeves announced the details of her Spending Review. In it she stated: “The government is providing targeted, long-term local growth funding to support regional growth across the UK, completing the transition from the UK Shared Prosperity Fund … In Scotland, Wales and Northern Ireland, the Offices for the Nations will work with the Ministry of Housing, Communities and Local Government (MHCLG) to implement the new local growth fund; and, investing in up to 350 deprived communities across the UK, to fund interventions including community cohesion, regeneration and improving the public realm.
“For 2026-27 to 2028-29, funding for Scotland, Wales and Northern Ireland across these schemes will be at the same overall level in cash terms as under the UK Shared Prosperity Fund in 2025-26.”
In Wales, the relevant “Office for the Nation” is not the Welsh Government, but the Wales Office, headed by Secretary of State for Wales Jo Stevens.
We asked the Welsh Government how it viewed being bypassed again, this time by a Labour UK government.
A spokesperson for the Welsh Government said: “We will ensure this £630m funding has greater impact than the legacy Shared Prosperity fund. We will continue to discuss the detail of this funding with the UK Government and will decide how it is used to support our economic ambitions and bring prosperity to all parts of Wales.”
Plaid Cymru Westminster leader Liz Saville Roberts MP said: “The UK Labour Government’s decision to retain control over Welsh regional funds is a deeply disappointing repeat of Tory policy: centralised, top-down, and dismissive of Wales.
“Wales was promised we wouldn’t lose a penny. Instead, we’ve lost over £1.1bn, and now Labour is making things worse by choosing to sideline Wales from key decisions.
So much for the Labour dream team.
Last week, Chancellor Rachel Reeves announced the details of her Spending Review. In it she stated: “The government is providing targeted, long-term local growth funding to support regional growth across the UK, completing the transition from the UK Shared Prosperity Fund … In Scotland, Wales and Northern Ireland, the Offices for the Nations will work with the Ministry of Housing, Communities and Local Government (MHCLG) to implement the new local growth fund; and, investing in up to 350 deprived communities across the UK, to fund interventions including community cohesion, regeneration and improving the public realm.
“For 2026-27 to 2028-29, funding for Scotland, Wales and Northern Ireland across these schemes will be at the same overall level in cash terms as under the UK Shared Prosperity Fund in 2025-26.”
In Wales, the relevant “Office for the Nation” is not the Welsh Government, but the Wales Office, headed by Secretary of State for Wales Jo Stevens.
We asked the Welsh Government how it viewed being bypassed again, this time by a Labour UK government.
A spokesperson for the Welsh Government said: “We will ensure this £630m funding has greater impact than the legacy Shared Prosperity fund. We will continue to discuss the detail of this funding with the UK Government and will decide how it is used to support our economic ambitions and bring prosperity to all parts of Wales.”
Plaid Cymru Westminster leader Liz Saville Roberts MP said: “The UK Labour Government’s decision to retain control over Welsh regional funds is a deeply disappointing repeat of Tory policy: centralised, top-down, and dismissive of Wales.
“Wales was promised we wouldn’t lose a penny. Instead, we’ve lost over £1.1bn, and now Labour is making things worse by choosing to sideline Wales from key decisions.
So much for the Labour dream team.
